Mehabe score: 2 G Factor: 3 Piotski Score: 1 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 3 and Piotski score of 1.
Description
Godrej Properties Limited (GPL) is the real estate development arm of the Godrej Group, which was started in 1897 and is today one of India’s most successful conglomerates. Godrej Properties brings the Godrej Group philosophy of innovation, sustainability, and excellence to the real estate industry. #
Main Points
Current Saleable Area
The company has a diversified portfolio of inventory situated at different locations around India. Pune accounts for 27% of total saleable area, followed by MMR (Mumbai Metropolitan Region) (21%), Bangalore (17%), Delhi NCR (15%) & the rest 21% of saleable area is located at other locations.Site:GODREJPROPMain Symbol:GODREJPROP
Stock trades at 1514.0, above its 50dma 1390.85. It also trades above its 200dma 1275.51. The stock remains bullish on techicals
The 52 week high is at 1573.45 and the 52week low is at 819.75
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Stock is trading at 5.06 times its book value
– has low interest coverage ratio.
-Promoter holding has decreased over last quarter: -6.00%
-The company has delivered a poor sales growth of -18.46% over past five years.
– has a low return on equity of 2.01% for last 3 years.
-Earnings include an other income of Rs.568.17 Cr.
-Debtor days have increased from 66.38 to 113.73 days.
Competition
– The industry trades at a mean P/E of 36.6x. Phoenix Mills trades at the industry’s max P/E of 281.71x. GODREJPROP trades at a P/E of x
– Industry’s mean G-Factor is 3.1 while the mean Piotski score is 7.0. GODREJPROP has a G-Factor of 3 and Piotski scoreof 1.
– Average 1 month return for industry is 5.0%. The max 1- month return was given by Brigade Enterpr.: a return of 15.75 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 433.0 cr compared to Rs 1163.0 cr for period ended Mar 2020, a fall of 62.8%
Company reported negative operating profit of Rs -222.0 cr for period ended Mar 2021. For same period last year, operating profit was 128.0
The EPS for Mar 2021 was Rs -6.89 compared to Rs 0.57 for previous quarter ended Dec 2020 and Rs 4.06 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 765.0 cr for period ended Mar 2021 vis-vis sales of Rs 2441.0 cr for the period ended Mar 2020, a fall of 219.1%. The 3 year sales cagr stood at -21.9%.
Operating margins shrank to -59.0% for period ended Mar 2021 vis-vis 11.0% for period ended Mar 2020, contraction of 7000.0 bps.
Net Profit reported at Rs -189.0 cr for period ended Mar 2021 vis-vis sales of Rs 267.0 cr for the period ended Mar 2020, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -3.0% compared to 2.0% over the last 3 Years. – The stock has given a return of 70% on a 1 Year basis vis-vis a return of 29% over the last 3 Years. – The compounded sales growth on a TTM bassis is -69% vis-vis a compounded sales growth of -22% over the last 3 Years. – The compounded profit growth on a TTM basis is -187% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has risen for the period ended Mar 2021. The Mar 2021 fii holding stood at 27.89% vis-vis 20.21% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 8.45% vis-vis 9.79% for Dec 2020
Conclusion
– – Stock is trading at 5.06 times its book value
– has low interest coverage ratio.
-Promoter holding has decreased over last quarter: -6.00%
-The company has delivered a poor sales growth of -18.46% over past five years.
– has a low return on equity of 2.01% for last 3 years.
-Earnings include an other income of Rs.568.17 Cr.
-Debtor days have increased from 66.38 to 113.73 days.
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 1390.85 and is trading at 1514.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
